Hospital sector likely to post healthy growth in FY23: ICRA report

Aggregate bed occupancy seen at 64% due to 'sustained improvement in demand', says agency

The hospital industry is expected to post occupancy levels of 62-64 per cent in FY23 and FY24 backed by demand for elective surgeries, medical tourism and organised players improving their market share, said rating agency ICRA.

Average revenue per occupied bed (ARPOB) is likely to grow 8-10 percent for the ICRA sample set of companies. The sample includes the hospital business of seven listed companies: Apollo Hospitals Enterprise Limited, Fortis Healthcare Limited, Narayana Hrudayalaya Limited, Aster DM Healthcare Limited (India business only), Max Healthcare Institute Limited, Healthcare Global Enterprises Limited, and Shalby Limited.

Companies' price revisions will likely offset cost